Trading Volume On Cryptocurrency Exchanges In India Increased After Quarantine
India, the second-most populous country in the world, is increasingly using cryptocurrencies due to domestic economic problems and the nationwide blockage associated with coronavirus.
It began on March 4, when the country’s highest court overturned the Reserve Bank of India (RBI) ruling of April 6, 2018, which prohibited banks from providing services to entities dealing with cryptocurrencies. Activity on the exchanges immediately increased.
“Trading volumes on exchanges serving Indian customers have grown significantly, thanks to the clarity offered by the Supreme Court,” said Ashish Singhal, founder, and CEO of the CoinSwitch cryptocurrency exchange.
Cashaa India crypto-banking services platform noted an 800 percent increase in trading volumes within 48 hours of the decision. “The platform also recorded 600+ BTC in the first 24 hours,” said Cashaa CEO Kumar Gaurav.
Then Indian traders were in a hurry, because of rumors that the government would intervene by declaring cryptocurrencies illegal. “Each trader wanted to take advantage of the temporary window proposed by the Supreme Court,” said Gaurav. This probably caused an initial surge in volumes.
Traditional markets, such as stocks and bonds, panicked in March when an outbreak of coronavirus gained momentum throughout Europe and the United States. India’s NIFTY 50 basic stock index fell 23 percent in March, while the Indian rupee hit a record low of 77.40 per US dollar.
Cryptocurrency exchanges in Mumbai WazirX also showed growth amid the coronavirus crisis. “Registration increased 25 percent during the block,” said Nishal Shetty, founder, and CEO of WazirX. He also said:
Meanwhile, the CoinDCX cryptocurrency exchange showed a 78.36 percent increase in trading volumes in BTC / INR pairs.
chief executive CoinDCX’s Sumit Gupta said.
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